Employees who have worked at least 1,000 hours over a 12-month period and are at least age 26 become eligible to receive retirement savings from the Bowdoin College 401(a) Retirement Plan. Any regular employee working 20 or more hours a week can decide at anytime to contribute to the Supplemental 403(b) Retirement Plan.

In addition, Bowdoin will contribute an amount equal to 4.3% of your compensation in excess of 60% of the Social Security Wage Base in effect on each July 1st. The Wage Base is updated every year. The figure for 2014 is $117,000, so employees who earn more than $70,200 are eligible in fiscal year 2014-15.

You are fully “vested” for all retirement funds. This means that if you retire or simply end your employment with Bowdoin, all funds belong to you (both the contributions and the investment earnings).

If you also wish to contribute money to your retirement, you can take part in the Supplemental 403(b) Retirement Account.

The Supplemental Retirement Accounts (SRA’s) are completely separate from the College’s Retirement Plan. The Bowdoin College Retirement Plan is money that the College contributes on your behalf. With an SRA, YOU make the contributions through pre-tax payroll deduction.

To take part in the SRA, you need to contribute at least $25 a month ($12.50 per biweekly pay period).

The maximum amount you can contribute on a calendar year basis changes each year. The general limit for calendar year 2015 is $18,000. If you are turning age 50 anytime in 2015 you are also eligible to contribute an additional $6,000 for a total of $24,000.

All contributions to a traditional 403(b) SRA are made on a “pre-tax” basis.

Once you set up the amount of the contribution, it will not change except at your written request.

NOTE: You also have the option to make after-tax contributions to a Roth 403(b) at Fidelity Investments. Unlike a traditional, pre-tax 403(b), the Roth 403(b) allows you to contribute after-tax dollars, but then you can withdraw tax-free dollars from your account when you retire*. This can assist you if the tax tables increase in the future or you feel you may be subject to a higher tax rate in your retirement than you are during your working years. The general limit for calendar year 2015 of $18,000 applies to a combination of both traditional pre-tax 403(b) contributions and after-tax Roth 403(b) contributions. There is not a separate limit for each type of contribution.

*In the event of either your retirement or termination, your earnings can be withdrawn tax-free as long as it has been five tax years since your first Roth 403(b) contribution and you are at least 59 ½ years old.

For contributions made on your behalf by the Bowdoin College 401(a) Retirement Plan you must pick from a College approved list of investment options. The approved list of investment options is reviewed annually by the College’s Investment Committee and is subject to change. For Supplemental 403(b) Retirement Accounts there are a number of funds to choose from with Fidelity, American Century and/or Vanguard. If you use Fidelity for your SRA contributions for either your traditional pre-tax 403(b) contributions or your after-tax Roth 403(b) contributions, you can pick funds from the approved list of investment options available for the Bowdoin College 401(a) Retirement plan or from any available Fidelity 403(b) fund. Fidelity Investments also sends a Bowdoin designated representative to campus several times a year and (s)he is available to provide personal investment advice. You can schedule an appointment by calling Human Resources at X3837.

When you become eligible to receive contributions from the Bowdoin College 401(a) Retirement Plan you will receive an enrollment form and a list of investment options from Human Resources.

If you wish to join the SRA, you need to do the following:

Decide how much money you want to contribute each pay period.

Decide which carrier(s) you wish to use.

Call Human Resources at X3837 to obtain the paperwork. You must fill out a Salary Reduction Agreement that allows payroll to deduct the money from your pay check and a Supplement Retirement Account application for the carrier(s) of your choice.

To make a change in the amount you are contributing to an existing SRA you will need to complete a new Salary Reduction Agreement.

In order to change or update the beneficiaries of your retirement plan(s), print and complete the appropriate form and return to Human Resources. If you have questions about the forms, please contact Mary Cote (x3033) in Human Resources.